Man of Steel

Ask not for whom the dinner bell tolls; it tolls for thee--just not at home. Filled with renewed confidence in the economy, Americans are once more hungering for the taste of someone else's cooking. Restaurateurs rejoice: Dining out is in.

According to the Brea, California-based restaurant consulting firm Sandelman & Associates Inc., casual dining, family dining and quick-service segments are all benefiting from the restaurant rush.

And patrons aren't just dining out more often, as Sandelman & Associates' research shows. Meal ticket averages--particularly in the casual dining segment--are rising at an impressive clip. Specifically, the casual dining ticket average rose from just under $29 in May 1995 to almost $40 only one year later. By way of comparison, ticket averages among family restaurant patrons rose from some $25 in February 1995 to more than $27 by September 1996. And even in the fast-food arena, ticket averages rose from in excess of $9 in late 1995 to just over $10 in about a year.

What explains the increase? Conventional wisdom points to less financially strapped diners more inclined to order pricier menu items or additional items. Restaurateurs are cautioned, however, to think long and hard before raising prices: Their financial health notwithstanding, more than 85 percent of diners surveyed rated perceived value as "extremely" or "very" important.

This article was originally published in the March 1997 print edition of Entrepreneur with the headline: Man of Steel.